This should have been fixed awhile ago in the 2.6.32-12 kernel when the
powersave feature was disabled by default. Are you still seeing these
issues Out_Cold?

** Changed in: xserver-xorg-video-intel (Ubuntu)
       Status: New => Incomplete

-- 
[i945gme] screen flashes and glitches when switching between applications and 
random occurances
https://bugs.launchpad.net/bugs/508898
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